Measuring the Gains from Globalization

The purpose of this project is to measure the gains from globalization and economic integration. In the first three subprojects we will explicitly test some of the major assumptions that researchers employ when measuring the gains from international trade due to growth in product variety and growth in firm productivity. In the last two subprojects we turn our attention to the relationship between trade and the environment and explore how import competition affects firms’ emissions and how investment in environmental abatement affects firms’ productivity. The results of these studies will help policymakers to more accurately quantify the costs and benefits of globalization in its many forms.